Riverbed Corporation issued a 5-year, $80,000, zero-interest-bearing note to Garcia Company on January 1, 2025, and received cash of $80,000. In addition, Riverbed agreed to sell merchandise to Garcia at an amount less than regular selling price over the 5-year period. The market rate of interest for similar notes is 12%. Click here to view factor tables. Prepare Riverbed Corporation's January 1 journal entry. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date January 1, 2025 Account Titles and Explanation Cash Discount on Notes Payable Notes Payable Unearned Sales Revenue Debit 80000 Credit 80000
Riverbed Corporation issued a 5-year, $80,000, zero-interest-bearing note to Garcia Company on January 1, 2025, and received cash of $80,000. In addition, Riverbed agreed to sell merchandise to Garcia at an amount less than regular selling price over the 5-year period. The market rate of interest for similar notes is 12%. Click here to view factor tables. Prepare Riverbed Corporation's January 1 journal entry. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date January 1, 2025 Account Titles and Explanation Cash Discount on Notes Payable Notes Payable Unearned Sales Revenue Debit 80000 Credit 80000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 24E: Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January...
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![Riverbed Corporation issued a 5-year, $80,000, zero-interest-bearing note to Garcia Company on January 1, 2025, and received cash
of $80,000. In addition, Riverbed agreed to sell merchandise to Garcia at an amount less than regular selling price over the 5-year
period. The market rate of interest for similar notes is 12%.
Click here to view factor tables.
Prepare Riverbed Corporation's January 1 journal entry. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final
answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit
account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Date
January 1,
2025
Account Titles and Explanation
Cash
Discount on Notes Payable
Notes Payable
Unearned Sales Revenue
Debit
80000
Credit
110
80000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb0592a4-88c0-4a22-b32f-9a31709ba17f%2F3d7916d1-31ac-4786-917e-02b6e8d60b75%2F9xnfbv6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Riverbed Corporation issued a 5-year, $80,000, zero-interest-bearing note to Garcia Company on January 1, 2025, and received cash
of $80,000. In addition, Riverbed agreed to sell merchandise to Garcia at an amount less than regular selling price over the 5-year
period. The market rate of interest for similar notes is 12%.
Click here to view factor tables.
Prepare Riverbed Corporation's January 1 journal entry. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final
answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit
account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Date
January 1,
2025
Account Titles and Explanation
Cash
Discount on Notes Payable
Notes Payable
Unearned Sales Revenue
Debit
80000
Credit
110
80000
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